GulfNav Raises Funds for Expansion
Dubai-based Gulf Navigation Holding’s board has approved the trading of rights issued in February 2018 to the company’s existing shareholders, without publicly offering the remaining shares.
The company's capital now stands at AED 919,209,250. (USD 250,254,718) The move is in line with the company’s interim strategy to expand its services and gradually increase the size of its fleet to keep up with upcoming contracts and expansion projects, considering its future expansion plans.
Gulf Navigation Holding announced a maximum of AED 488 million (USD 133 mln) in capital increase through trading of the rights issue from 11 February to 1 March 2018 with a total value of AED 367,542,584. The company’s capital after increase is AED 919,209,250 distributed to 919,209,250 shares at a nominal value of AED 1 per share.
The UAE nationals have contributed to 95% of the shares, GCC citizens to 2%, and other nationalities to 3%.
Gulf Navigation decided to settle for what key shareholders have covered because the company has a stagebased operational plan and is gradually increasing its assets and resources. The company's current revenues have been growing significantly thanks to the wise procedures taken by the new management that have led the company to make profits and grow its assets.
H.E. Khamis Juma Buamim, Board Member and MD & Group CEO of Gulf Navigation Holding Group,said, "We have developed our strategic plan, which was approved by the Board of Directors, to be gradual in its growth and assets and is implemented in stages. Since we started executing our strategic plan in mid2016, we have succeeded in achieving steady progress in revenues.”
"The amount collected in the capital increase is equal to 82%. This is sufficient to cover the company's interim expansion plans and increase its assets over the short term. Therefore, The Board of Directors has decided to settle for the amount collected from existing shareholders and not go for public offering," added Buamim
Among the key achievements of the company's new strategic plan was the full restructuring of the company, the settlement of all previous debts and financial and legal issues and signing agreements and strategic partnerships to launch one of the largest maritime service companies for the oil and gas sector and maritime services in the region.
